Market Update
Tsys slightly lower on low volume in TY futures, US 10Y 2.209, before FOMC Wednesday, key eco data (CPI, retail sales…) and 3,10 & 30Y supply this week. Equites weaker, emini -6, gold higher, crude continuing higher from Friday, now up 1.57% on bullish outlook from Saudi Energy Min. GOCs mixed, short end lower, curve flatter as 5-10 yr yields ~0.5bps lower, GOC 10Y 1.42%. Provincial spreads closed 1bp wider last week, NB long deal @ 89.5 Friday adding to pressure on spds. CMB 5Y expected to be launched today, weve seen good expressions of interest , CMBs look cheap vs provis and have lagged the tightening.
News headlines
Stock futures down as tech rout continues (Reuters) U.S. stock index futures were lower on Monday, with Nasdaq futures taking the biggest hit as investors locked in gains on the richly-valued technology sector. Technology stocks have been enjoying a record-setting rally, helped largely by strong quarterly earnings. The S&P 500 technology index .SPLRCT has risen 18.5 percent this year and is on track for its best yearly performance since 2014.
GE’s Immelt Steps Down Amid Trian Pressure as Flannery Named CEO (Bloomberg) Jeffrey Immelt is stepping down as chairman and chief executive of General Electric Co., ending a 16-year tenure during which he dramatically reshaped one of the world’s top manufacturers yet struggled to win the approval of Wall Street.
U.K.’s Hung Parliament Raises Business Hopes for a Softer Brexit (Bloomberg) Most business leaders are dismayed at the political chaos unleashed by the U.K. election, which left a damaged Prime Minister Theresa May trying to forge a shaky coalition government. But some are quietly hoping that it may lead to softer terms for the country’s exit from the European Union.
UK PM May’s Brexit plan has not changed, her spokesman says (Reuters) Britain’s plan for leaving the European Union has not changed, Prime Minister Theresa May’s spokesman said on Monday, despite a disastrous election gamble that has plunged British politics into chaos days before formal Brexit talks begin.
MIDEAST STOCKS-Qatari banks fall after UAE red flag; UAE’s Dana Gas, DSI rise (Reuters) June 11 Shares in Qatari banks fell on Sunday after the United Arab Emirates central bank ordered UAE banks to be wary of accounts which they hold with six Doha-based lenders, while Dana Gas and Drake & Scull outperformed in the UAE.
Encana and Centrica sell natural gas assets in deals worth $1.7 billion (Financial Post) A pair of natural gas deals worth a combined $1.7 billion were struck Friday and experts say more acquisitions and divestitures are expected in the sector as companies move to refocus their portfolios.
Overnight markets
Overview: US 10yr note futures are down -0.074% at 126-11, S&P 500 futures are down -0.14% at 2424.75, Crude oil futures are up 1.7% at $46.61, Gold futures are down -0.14% at $1269.6, DXY is down -0.13% at 97.144, CAD/USD is down -0.22% at 0.7442.
US Economic Data
| 2:00 PM | Monthly Budget Statement, May, est. -$87.0b (prior -$52.5b) |
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, Jun 9, (prior 57.9) |
Disclosure and Disclaimer
The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.
Ivan Greenstein, Stephan Buu, David Leclair-Legault
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230